Monthly Archives: May 2011

Real Revenue – the Evolving US Economy

We’ve examined federal gov’t revenue but what about the economy supporting that revenue?  US employment and value-added are evolving very differently in tradable vs non-tradable sectors.  Tradable activities can be part of global supply chains.  Formerly nontradable ones are increasingly tradable. When they … Continue reading

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More About GDP

GDP overstates economic growth; it includes gov’t spending paid for with debt.  If our gov’t borrowed and spent an additional 20% of GDP this year, GDP would grow 20% but there would be no increase in prosperity (we are in fact … Continue reading

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More on Unemployment

Our most comprehensive measure of labor resource unemployment is the Bureau of Labor Statistics’ U6.  By that measure unemployment has doubled from 8% in 2007 to 16% now. U6 counts not only people 16 years and over who are seeking full-time … Continue reading

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More About US Gov’t Debt

In 2001 the Congressional Budget Office (CBO) projected that US gov’t debt would be erased in 2006.  They projected that by 2011 the US gov’t would be $2.3T in the black.  Why their projections changed is analyzed in “The Great … Continue reading

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Structural Unemployment, our Biggest Elephant

USA Inc, our federal government, operates at a loss whose causes are structural.  Some expenses are growing faster than the economy can grow and our revenue faces a crisis.  If we continue on our current path, a quarter of our future work force will … Continue reading

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